VISAKHAPATNAM: Investments may soon flood the coastal Andhra Pradesh with the State Government giving its consent to the much awaited ‘Coastal Corridor Development’ (CCD) in the region.

Under the project, the 972 km coast line from Ichapuram in Srikakulam district bordering Orissa in north to Tada of Nellore district touching Tamil Nadu in south would be developed using natural resources and private investments.....

"Our state stands in second position after Maharashtra when it comes to attracting investments," Finance Minister K Rosaiah told the State Legislative Assembly while presenting the State Budget for 2007-08 on Monday.

"Our government is adopting a two-pronged strategy to promote industries in the state. Te first one being, providing concessions, subsidies and incentives to help the industries in the state to become competitive and grow at a brisk pace. For the first time, the power tariff for the industry was reduced, making it the most competitive in the country. For small-scale and new industries, we are providing a subsidy of 75 paise per unit of power," he explained.

The finance minister said that single window clearance has been established to avoid inordinate delays. To the entrepreneurs who are setting up small-scale industries, the government is providing capital subsidy. An allocation of Rs 75 crore (Rs 750 million) has been earmarked for this purpose in the state budget for 2007-08.

"We are committed to providing world class infrastructural facilities to make AP manufacturing hub for national and international companies. A lot of world class companies have offered to establish their production units in the State. First Phase works of the prestigious semi-conductor manufacturing facility-FAB City -- are already underway. The second phase will be started as soon as the Central government announces the semi-conductor policy," he added.

The Apache factory manufacturing shoes at Tada in Nellore district has already commenced production. The expansion programme of Visakhapatnam Steel Plant budgeted at Rs 9,000 crore (Rs 90 billion) has already commenced. The government has recently cleared Rs 1,200 crore (Rs 12 billion) proposal of MLR Motors project for setting up car manufacturing. For the benefit of handloom weavers and leather industry, textile and leather parks are being established in all the regions of the state.

Reiterating the government's commitment to spread information technology and communication (ICT) across the spectrum of the state, which was hitherto limited to small pockets like Madhapur and Gachi Bowli on the outskirts of Hyderabad, he said that "a conscious effort is being made to spread and take the IT to areas around Hyderabad and even to small towns, so that the entire state will be transformed into a knowledge society.

He said that the government has identified 31 special economic zones for setting up of IT units in different districts and necessary infrastructure is being provided. Warangal, Visakhapatnam, Kakinada, Vijayawada and Tirupati are being promoted as Tier-II IT hubs in the state. The State has maintained the first position in IT growth rate during the last two years.

The finance minister said that the government focussed on developing the infrastructure facilities like power, roads and transport to global standards. The state budget for 2007-08 earmarks Rs 1,750 crore (Rs 17.50 billion) for construction and maintenance of roads. The government has also taken up expansion of 12 non-major ports for enhancing the cargo handling capacity from the existing 18 million tonnes per annum to 100 million tonnes by 2012.

Works are going on at a rapid pace at ports like Gangavaram, Krishnapatnam, Nizampatnam and Machilipatnam. In fact, it is planned to bring Gangavaram and Krishnapatnam ports into operation by 2008.

To keep pace with the growing demand, the expansion of airports at Visakhapatnam, Vijayawada, Rajahmundry and Puttaparty would be taken up immediately and Memorandum of Understanding for development of airports at Warangal and Kadapa was reached with Airports Authority of India recently. Simultaneously, techno-economic feasibility for development of Greenfield airports at Nellore, Ongole, Ramagundam and Tadepalligudem would be taken up.

"We have provided free power to the farmers for the last three years without resorting to tariff hikes for domestic and industrial consumers and retained our Numero Uno position in power sector in the country," Rosaiah said and added that the government has initiated all the necessary steps for capacity addition to meet the growing demand for power.

In the coming year, more capacity would be added as the natural gas needed for power production is being made available. In all, 8,963 megawatts capacity is going to be added to the existing capacity in power sector during the XI Plan period (2007-2012). Besides, a major power project of 4,000 MW capacity at Krishnapatnam and the 1,000 MW expansion project at Simhadri are being taken up in the state during the XI plan period.

"The new Hyderabad international airport will be ready for operation by the end of next financial year. To east traffic congestion in Hyderabad, we are constructing Outer Ring Road with an outlay of Rs 4,000 crore (Rs 40 billion). Flyovers are being constructed at important junctions. Mass Rapid Transport System (Metro Rail) is proposed to be established with an estimated cost of Rs 8,760 crore (Rs 87.60 billion). An expressway project that will catapult Hyderabad to international standards is being planned with Rs 600 crore (Rs 6 billion)," he pointed out.

Considering the fact that a high-speed rail network (freight + passenger) would require sophisticated technology to build with dedicated tracks and the whole nine yards and keeping in mind the distance between Hyderabad and Vishakhapatnam (~650KM), Rs.90,000 crore, albeit a lot, seems like a realistic figure to me.

The coastal belt comprising of Vizag, Kakinada and Machilipatnam coupled with Guntur and Vijayawada is a high-density corridor with two major ports and atleast as many key business centers along it's way. Add Hyderabad to the list and the whole project becomes more than just feasible.

I can't even start to imagine the amount of growth this entire stretch will experience once this network is in place. The best part being the possibility of the track(s) running almost parallel to the two major highways - NH5 & NH9 (barring a small diversion between Machilipatnam and Guntur).

SIDE NOTE: How about constructing a high-speed rail 'quadrilateral' and an east-west/north-south 'diagonals' between major cities in the next 10-15 years time? The design of the 'quadrilateral' is pretty obvious with Delhi, Mumbai, Bangalore, Chennai and Kolkata figuring in the scheme of things and being given equal importance. However, Hyderabad's strategic location on the map can make it a hub along the east-west/north-south line.

3 seaports to be operational from 2008
GUNTUR: The three anchorage ports proposed at Gangavaram near Visakhapatnam, Gilikaladinni in Machilipatnam and Krishnapatnam in Nellore district will handle cargo services from April-May 2008, Minister for Ports, Airports and Basic Infrastructure Mopineni Venkata Ramana Rao has said.

Out of the three seaports, works had already begun at two ports -- Gangavaram and Krishnapatnam, he told reporters on Monday. Works regarding the construction of port at Machilipatnam were likely to begin from September and Chief Minister Y.S. Rajasekhara Reddy will lay foundation stone. Construction of all these ports was being done on a PPP mode.

Gangavaram works apace industry Dossier
VISAKHAPATNAM: After weathering protests over rehabilitation and resettlement package, the Gangavaram Port Limited (GPL) is racing against time to make the port operational by this year-end.

The port, being developed under public-private participation by forming a special purpose vehicle, will be expanded in phases. The construction work is going on at a fast pace and indications suggest that the port will be commissioned with five berths.

Harbour depth: The all-weather, deepwater, multi-purpose world-class port will have one iron ore and a coal berth and three multipurpose berths. It will have a harbour depth of 21 metres – said to be the deepest among all Indian ports...

Hyderabad, Aug. 23: Chennai will become closer to Hyderabad if the proposed rail route between Nadikudi and Srikalahasti fructifies. The new railway line is expected to shorten the distance between the two state capitals by 150 km. Union railway minister Lalu Prasad Yadav has agreed for a fresh survey to take up the project stretching 390 km and with an estimated cost of Rs 712 crores. The new railway line is expected to benefit passengers travelling to Piduguralla, Vinukonda, Darsi, Pidili, Kanigiri, Ravipadu, Vinjamuru, Atmakur, Rapur and Venkatagiri...

Mr Yadav also approved the proposal for the construction of new route between Bhadrachalam-Kovvuru stretching 151 km with an estimated cost of Rs 334 crores. At present, the distance between the two places is around 380 km as the trains can travel only via Vijayawada. The new route will facilitate transportation of mineral wealth from Khammam district to port cities like Kakinada and Visakhapatnam. “The State government will urge the railway minister to introduce supplementary budget in Parliament for the release of funds in the current financial year itself. So that the projects can be taken up immediately,” said the officer.

Deccan Chronicle

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AP seeks Rs 1,600cr from WB to develop State roads
Ongole, Sept. 5: The State government will develop 10,200 kilometers of State roads soon and proposals for Rs 1,600 crores for carrying out works were sent to the World Bank, said chief engineer and managing director of the AP roads development corporation (APRDC) B. Rajgopal Reddy here on Wednesday.

The bank had sanctioned Rs. 100 crores as first installment to start works and these will be established shortly, he said. The APRDC will develop 630 kilometers of roads in Prakasam district and the Taticharla-Mydukuru and Giddalur-Porumamilla roads were included, he said...

Plan to set up industrial corridor in A.P.
VIJAYAWADA: The Andhra Pradesh Government is taking up an ambitious plan to develop Hyderabad-Vijayawada-Visakhapatnam Growth Corridor (HVVGC) to give thrust to industrial growth in Ranga Reddy, Hyderabad, Nalgonda, Krishna, West Godavari, East Godavari and Visakhapatnam districts. Guntur, Khammam and Warangal also would come under the influence of the project. The Government has identified six area-specific industrial hubs extending over 10,000 hectares to attract investments.

Plan to set up major industrial corridor
VIJAYAWADA: The State Government is taking up an ambitious plan to develop Hyderabad-Vijayawada-Visakhapatnam Growth Corridor (HVVGC) to give thrust to industrial growth in Ranga Reddy, Hyderabad, Nalgonda, Krishna, West Godavari, East Godavari and Visakhapatnam districts.

Three other districts -- Guntur, Khammam and Warangal -- also would come under the influence of the project. Under the project, the Government has identified six area-specific industrial hubs extending over 10,000 hectares to attract investments up to Rs. 8,000 to Rs. 10,000 crore and generate 8-10 lakh additional employment. The Government would provide high speed rail/road connectivity along the corridor with feeder road linkages, besides infrastructure facilities like underground water, sewer lines, oil and gas pipelines, power and telecommunications etc, at a cost of Rs. 15,000 crore in the first phase. Andhra Pradesh has emerged as one among the five progressive economy States in the country contributing about seven per cent of national economy.

Industrial hubs : On the basis of the potential for growth and inherent strengths of various locations in the influence area, six industrial hubs, which would be spread over a minimum radius of 100 sq. km, have been identified.

Hub 1: Hyderabad will be developed as a prime transport hub with the international airport coming up at Shamshabad and also for IT/ITES, biotechnology, pharmaceuticals and tourism. Hub 2: Suryapet-Miryalaguda-Jaggaiahpet region as agro and food processing hub. Hub 3: Vijayawada-Machilipatnam region as regional transport hub as well as knowledge centre. Hub 4: Rajahmundry as textile and trading hub. Hub 5: Kakinada as petroleum and chemicals, petrochemicals investment region. Hub 6: Visakhapatnam-Anakapalle-Tuni region as special industrial and transport hub.

State for converting 4,500-km roads into NH
HYDERABAD: Andhra Pradesh is staking its claim for conversion of an additional 4,590 km into National Highways in the State. A detailed proposal has been submitted to the Ministry of Shipping, Road Transport and Highways urging it to consider conversion and development of 17 roads in the State. In fact, the little known fact to the public is that the State already has 15 National Highways covering a distance of 4,648 km.

While 1,125 km of National Highways are mostly four-lane roads and six-lane in some places, 3,158 km of the NH are two-lane roads. Only 365 km of NH is a single-lane road. As many as 1,705 km of National Highways have been added in the State between 1997 and 2004 (Ninth and Tenth plan periods).

The State is actually entitled for another 1,000 km of national highways. In population terms, there should be 6.4 km of NH for every one lakh population (as per the national average). But Andhra Pradesh has 6.03 km of NH. Similarly, there should be 19.95-km-long NH for every 1,000 square km. In the case of Andhra Pradesh, the availability of NH road length is 16.59 km per 1,000 sq. km, according to Chief Engineer of R&B (National Highways) G.V.S. Suryanarayana Raju.

What is the logic behind proposing so many roads for conversion when the State is entitled only for only 1,000-km-long National Highways additionally? Dr. Raju says the Union Government usually considers the proposals whenever it decides to extend the length of the NH in other States to maintain parity between the States.

Andhra bhoomi reports ... (Jan 2007)
Jalayagnam project would benefit Telangana most. Telangana districts are going to become the rice bowls. The two Godavari districts which are leading so far, would go down to 10th and 11th positions ...
The first five positions will go to Telangana districts... (rankings based on area of land coming under irrigation).

Reliance plans $400 mn jetty in Kakinada
Rakteem Katakey in New Delhi | February 23, 2007 01:31 IST
Reliance Industries, which has discovered gas reserves of nearly 14 trillion cubic feet in the Krishna-Godavari basin off the coast of Andhra Pradesh, is building a gas-receiving jetty in Kakinada.

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Reliance Ind lines up Rs 7 bn for biodiesel plant
Source: IRIS NEWS DIGEST (22 February 2007)
Reliance Industries is planning to set up the country`s first biodiesel refinery in Andhra Pradesh at a cost of around Rs 7 billion, reports Hindustan Times...
RIL has ambitious plans for the biofuels business and is cultivating jatropha, a plant that can yield high quality biodiesel, in a 200-acre plot at Kakinada in Andhra Pradesh. ...

'Ship unit sailing on course'
Ganesh S Lakshman [ 6 Mar, 2007 0303hrs ISTTIMES NEWS NETWORK ]
HYDERABAD: Engineering and construction conglomerate Larsen and Toubro has said the feasibility report on the ship building unit at Kakinada would be ready by the end of this month.

Quote:

Andhra Bhoomi reports: Efforts are on to obtain SEZ status for Kakinada IT Park
Preparation are in progress to aquire 60 acres of land for the IT SEZ
Infotec has already started operations in IT park.
Wipro and Satyam to start oprations soon.

HYDERABAD: The State Government has finally decided to shift the site for development of a modern Machilipatnam port to Gilakaladinne from Gogileru in deference to the sentiments of local people in Krishna district who have been agitating on the issue.

Announcing the decision at a press conference here on Monday, Chief Minister Y. S. Rajasekhara Reddy said the shifting would entail re-designing of the project leading to cost escalation by Rs 200-330 crores, but the Government itself would bear the entire additional burden.

He said the Government had selected Gilakaladinne, respecting popular sentiment and considering the unanimous resolution adopted by an all-party committee. He said that location of the modern port here would pave way for development of Machilipatnam town. "The modern port will befit the hoary history of Machilipatnam as a port," he added.

Additional cost : Official sources said the additional cost would go towards construction of a longer breakwater (at least 5 km), deepening of the sea through dredging and provision for a sand-trap, which were all necessary if Gilakaladinne (5 km from Machilipatnam) was to be developed as a "near-shore anchorage port" in preference to Gogileru (37 km). Annual operation/maintenance costs would also go up.

Dr Reddy said an independent technical committee would be appointed to assess the additional costs. Another committee would then finalise the modalities for signing a "concession agreement" with the developer. He said a consortium, formed with M/s Maytas Infra Pvt Limited--NCC-SREI-SEC had been chosen as the developer through competitive bidding with the project cost estimated over Rs 1,250 crores based on 2001 rates. The original cost, estimated by RITES, however, was Rs 860 crores.

YSR thanked : Asked if the 6,000 acres of land already acquired at Gogileru would be developed into a Special Economic Zone, the Chief Minister said all such proposals would be examined. B. Ramakrishna, MP, and Perni Venkataramaiah, MLA of Machilipatnam, who were present, thanked the Chief Minister for the gesture for selecting Gilakaladinne for establishing the port.

April 2007: AP’s Rs 30,800cr plan gets approval
Deccan Chronicle

Quote:

Hyderabad: The State government has got in principle acceptance for Rs 30,800 crore plan for 2007-2008, reports our special correspondent. However, the Planning Commission is expected to formally announce its decision when Chief Minister Y.S. Rajasekhar Reddy meet commission deputy chairman Montek Singh Ahluwalia on April 16. While the State proposed a total plan outlay of Rs 30,013 crores, the Planning Commission has approved Rs 30,800 crores thanks to increased allocations for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Accelerated Irrigation Benefit Programme (AIBP).

Official sources told this correspondent that the State’s allocation in JNNURM went up by Rs 200 crores and AIBP Rs 500 crores. The sources said special chief secretary (finance) P. Ramakantha Reddy and secretary (finance) A. Giridhar held discussions with Planning Commission officials in New Delhi on Monday. The State government, which got an approval for Rs 20,000 crores for 2006-2007, will get Rs 10,000 crores more this financial year due to increased tax collections.

Airport expansion plan awaits nod
VIJAYAWADA: While software professionals and industrialists are concerned over the delay in the execution of work of expanding the Gannavaram airport, the Airports Authority of India (AAI) has good news about its soon-to-be-approved master plan for the development of a well-equipped air field with a full-length airstrip there. AAI officials say that their effort is to ensure that the master plan is approved and released by December-end so that there will be no hurdles in taking up the expansion of the existing runway, besides constructing a new terminal, new bases for night landing and other facilities.

Accessible airfield : AAI Executive Director (Planning) G.K. Chaukiyal told The Hindu that they were in the process of finalising the master plan for development of Gannavaram airport into a highly useful and accessible airfield to meet the needs of even bigger aircraft. The master plan became necessary after the officials decided to prepare a viable plan for expansion of the airport without disturbing surrounding villages and private properties, except in one or two instances. After a thorough study, the AAI officials have decided not to disturb Buddhavaram, Ajjampudi, Kesarapalli and surrounding villages at any cost. In all likelihood, the plan will consist of three phases of development. One of the chief features of the plan may be increasing the length of the runway from the existing 1,745 metres to 3,800 metres.

Full-length runway at Gannavaram airport soon
... As per the new proposals, a new terminal building will come up on AAI’s land at Gannavaram airport. It will have a capacity for 200 incoming and 200 outgoing passengers.

Does anyone have the status of the several SEZs planned for Sathyavedu region in Chittoor district ?

As far as we know Sathyavedu Infrastructure City , now called Sricity www.sricity.in has a land bank of about 1200 acres. They are building an information center inside near Tada and not much else. The Architect for the project Jurong International, Singapore has not announced it yet in their news letters . However one Aravind Varuna Architects, who designed the HCL IT parks in Chennai, have been appointed as the local architects.

There has been furious activity by private land banking firms in recent months in and around Sathyavedu, particularly near the picturesque Nagalapuram hills which stands at a majestic 1700 feet above sea level.

On the Tamil Nadu side of the border, near the Tada Apache SEZ, a new hospital "city" under the brand name "medicity" has been promoted in over 280 acres by Dr Cherian.

Hope So They Do It As Soon As Possible.It Has To Get A Big Terminal Building
As There's Alot Population Density In Central Coastal Districts With Alot Of Business Oppurtunities For NRI's Residing In The U.S Where Vijayawada Could Be A Good Transit Point To The West Coast Of U.S.A & Some South Asian Cities.Rajahmundry Could Be An Alternative Hub.

Kakinada: Agriculture Minister N. Raghuveera Reddy has said the State Government is negotiating with the Central Government on the issue of Minimum Support Price (MSP) for paddy and trying to mitigate the losses of farmers by giving more subsidy within its limitations. The government has decided to hike the allocation for the agriculture sector in the next financial year to Rs. 30,000 crores from the current figure of about Rs. 22,600 crores.

Speaking to the media after visiting the hill shrine of Annavaram in the district on Friday, Mr. Reddy claimed that Andhra Pradesh stood third among all States in the country in the development of the agriculture sector after the Congress came to power. It was previously ranked sixth.

Farm loans

Renewed focus was laid on increasing the production and alleviating the plight of farmers by extending more financial assistance to them.

The Congress Government reduced the rate of interest on farm loans from 14 per cent to 7 per cent and 12 to 5 per cent on cooperative loans to enable them to meet the rising costs.

At the same time, awareness was being spread about the latest techniques for achieving higher yield and the importance of organic farming which was cheaper and eco-friendly. Huge sums of outstanding loans payable by farmers were waived to extricate them from the financial crisis.

The Minister expressed confidence that there would be a substantial increase in production due to the copious rain received in the recent past and greater importance attached to the irrigation projects.

Necessary help was being extended to farmers to produce more of agricultural commodities. Agriculture Joint Director T. Nandaiah, Deputy Director I. Ramakrishna Murthy and others were present.

HYDERABAD: Fulfilling a long-pending demand from a cross-section of people, Chief Minister Y. S. Rajasekhara Reddy announced here on Friday that Nellore district would be named after Potti Sreeramulu, who sacrificed his life demanding a separate State for the Telugus.

The announcement came a day ahead of the 55th death anniversary of ‘Amarajeevi’ on December 15 after the Chief Minister discussed the issue with elected representatives and senior officials. The district will hereafter be called “Amarajeevi Potti Sreeramulu district”. The new name will be adopted at a ceremony to be organised after formal approval of the decision by the Union Government. Dr. Reddy recalled that Sreeramulu had launched his historic fast-unto-death at Madras on October 19, 1952, demanding Andhra State. Mahatma Gandhi once remarked: “I would have achieved freedom for the country in one year if there had been at least 10 leaders like Potti Sreeramulu with me.”

ONGOLE:The District Development Review Committee (DDRC) meeting to be held here on Saturday would debate on the location of airport on Kothapatnam road 12 km from Ongole. Though the district administration sent three alternative sites for locating the airport, the site available on Kothapatnam road seems to be easiest for allotment. Following a plea from M Sreenivasulu Reddy, MP, to locate an airport near Ongole, the Infrastructure Corporation of Andhra Pradesh Limited (INCAP) sought proposals for acquiring 600 acres required for the purpose.

The district administration initially wanted to find the land on NH 5 between Ongole and Medaramitla so that the airport could be accessible to both Guntur and Prakasam districts. It found 400 acres vacant in the industrial growth centre at Gundlapalli and proposed to get the land alienated for airport.

But Andhra Pradesh Industrial Infrastructure Corporation stoutly refused to part with the land. Though APIIC acquired 1300 acres at Gundlapalli for industrial growth centre two decades ago, it could use only 600 acres till now for allotment of plots to prospective industrialists. Many of the allottees did not start any industry till now. Also about 1000 acres abutting industrial growth centre is available for acquisition.

So the district administration proposed to allot 400 acres of vacant land for airport so that it would stimulate industrial growth in the remaining area. But APIIC flatly refused the proposal saying that the project was taken up with the Central Government funds and the land can not be used for other purposes.

The district administration searched for alternative lands and found 700 acres available between Allur and Aloor villages three km north of Ongole-Kothapatnam road. The land was assigned to landless poor more than two decades ago. But the assignees did not occupy the land till date violating the conditions imposed. The administration proposed to cancel the assignment and alienate the same for airport purpose.

Third alternative is 500 acres of private land available between Velagapudi and Tallapalem on the eastern side of Tangutur. The land belonged to industrialist Bellam Kotaiah and his family members. He expressed a wish to donate the land on the condition that the airport should be named after him. He is also willing to sell away the land at government rate.

The DDRC is expected to discuss these alternatives and take a final decision on Saturday.

Flyover at Benz Circle soon
VIJAYAWADA: Traffic snarl at Benz Circle is soon likely to be a thing of the past. The Vijayawada Municipal Corporation (VMC) will construct a flyover at Benz Circle to ease traffic congestion and has asked New Delhi-based Consulting Engineering Services (CES) to prepare a Detailed Project Report for the flyover, according to Municipal Commissioner Natarajan Gulzar.

Addressing a press conference here on Saturday, Mr. Gulzar said CES would submit the report in a month. The corporation was proposing to construct the flyover as part of the Bus Rapid Transit System project that would cost Rs. 152.64 crores. Although the cost of the flyover was yet to be finalised, the amount was roughly estimated at Rs. 12 crores.

Mr. Gulzar said they had invited tenders for execution of the BRTS project. During the first leg of the project, the corporation would lay roads at a cost of Rs. 14 crores, and construct two bridges at Machavaram and near the Central Warehousing Corporation at an expenditure of Rs. 11 crores.

EPC basis: The VMC is proposing to construct the flyover on the Engineering Procurement Construction (EPC) basis. It has asked the consultant to design the flyover in such a way that the traffic coming from Eluru Road, NTR University of Health Sciences, Five Number route, and other places could go directly towards Krishnalanka and Kanakadurga Varadhi without waiting at Benz Circle.

The VMC also wanted the BRTS buses to ply on the long service roads that start at Ramavarappadu on National Highway -5, and pass via Eenadu office, and take a ‘U turn’ at NTR Circle and go towards PWD Grounds on Bandar Road.

HYDERABAD: In a significant development, the government has allowed two major benefits to M/s. BPL Company to revive its 520-MW power project at Ramagundam.

Firstly, it has accepted BPL’s proposal to allow a 16 per cent return on equity (the developer’s investment, barring loans and lands), higher by 2 per cent than what has been allowed to any power project so far.

It has also agreed to bear the burden arising out of the “rupee-dollar exchange fluctuations”, covering the project’s foreign loan component projected at 54 per cent of the investment. In the original power purchase agreement (PPA), the BPL was asked to bear this risk. Highly-placed sources say that the Rosaiah Committee on power sector has cleared these sops last week and BPL will soon be asked to revive the project.

A senior Energy official justified the decision to allow 16 per cent return on the ground that it was in line with the Centre’s policy. Experts, who fear that value of rupee against dollar may not be as stable, see serious implications in protecting the company against rupee-dollar fluctuations. A loss of one rupee in case of its depreciation against the dollar will lead to an extra burden of Rs. 30 crore considering that the loan comprises 54 per cent of the project’s investment of Rs. 2,750 crore. The Government has earlier scrapped the PPA with M/s BPL as the company has not achieved financial closure and transferred the project to AP Genco. The decision to hand over the project back to the BPL is seen by critics as a “virtual somersault” of the earlier stand.

VIJAYAWADA: In all probability, the runway of Gannavaram airport will be expanded to 2,286 metres only from the existing 1,745 m in the first phase of the airport’s development so that bigger aircraft like Airbus 321 will land here fulfilling the long-standing aspirations of the travelling public for improved air connectivity.

Originally, the Airports Authority of India (AAI) wanted to expand the runway up to 2,800 metres but it is being revised to 2,286 metres with a view to avoiding the issue of land acquisition and also seeing that the works in first phase should begin as early as possible. The AAI officials have said immediate effort will be placed on creating infrastructure facilities at the airport to enable starting of operations by the slightly bigger aircraft with seating capacities of about 185. It is learnt that some airliners have already expressed willingness to start A321 operations once the relevant facilities are created at the airport.

Delay

As there is a view that considerable delay has been made in beginning works in the first phase, the AAI officials have apparently cut short the proposed length of the runway for expansion. Moreover, if the runway is to be expanded up to 2,800 m, a need will arise for acquiring additional land and that will mean unavoidable delay.

With the first phase expansion being planned within the available land of Gannavaram airport, the AAI officials have ruled out delay in executing the expansion works here despite the fact that the public want local people’s representatives to bring pressure on the Union Civil Aviation Ministry in this matter.

AAI Executive Director (planning) G.K. Chaukiyal told The Hindu that there would not be any delay and the whole plan of expansion was being pursued in accordance with the memorandum of understanding that was reached with the State Government with regard to Gannavaram airport.

The leaders of Andhra Chamber of Commerce and Industry have said that if the expansion works were not taken up immediately to enable landing of bigger aircraft, it would only damage the prospects of Vijayawada’s development when compared with other tier two cities.

Andhra Chamber president Mallineni Rajaiah said the matter has been represented to local MP Lagadapati Rajagopal saying that further delay in increasing air connectivity would result in a greater loss to the city’s prospects for development as a whole. Chamber former president Gokaraju Gangaraju said there was an urgent need to expand the air strip so that bigger aircraft would be able to start operations boosting growth of industry and trade.

Eenadu reports:
==Polavaram Dam will be completed by 2010
Works are in progress in non-forest areas
7.2 Lakh acres land to benefit from irrigation
960 MW power generation
80 TMC water supply for Krishna Delta
25 TMC water for Vizag
52 Mtr high dam wall

16 The industrial investment in Andhra Pradesh during the period 2004–07 has been of the order of Rs 10,570 crore, with the setting up of 6,092 units.

In contrast, the figures for the previous three years (2001–04 during the TDP rule), were Rs 4,524 crore and the number of units opened was 5,046 units.

Giving this information, the State Government has claimed that the continuing good performance and investment climate in the State is expected to make it the top destination for investments, ahead of Gujarat, soon.

“I have no doubt that AP will surpass Gujarat in industrial infrastructure and investments in a host of leather, textiles, IT, automobile and Bio-technology products, said the Chief Minister, Dr Y.S. Rajasekhara Reddy, during a review meeting on the progress of SEZs held in the Secretariat today.

Sectoral performance

Mr Reddy said the cement production in the State would go up from the present 29 million tonnes to 33 million tonnes with new investment in the sector.

Similarly, the capacity in steel sector will grow phenomenally from 4.5 million tonnes to 18 million tonnes. The turnover in the pharma sector will also increase to Rs 20,000 crore from the present 12,000 crore in the next three years, triggering pharma export to Rs 11,000 crore from the present Rs 7,000 crore.

The Chief Minister said the production levels in the textiles sector will almost double in view of the Rs 9,000 crore investments proposed in the coming years.

The Principal Secretary (Industries), Mr B. Sam Bob, informed the Chief Minister that 70 SEZs have been approved for the State, of which 46 have already been notified and are being developed over 6,894 hectares at a cost of Rs 32,525 crore.

SEZ approvals

Of these, 24 SEZs have received in-principle approval and are being set up in 1,250 hectares. On completion of all the projects, the SEZs will generate employment for 25 lakh persons, of which they had already created 10,000 jobs.
Multi-product SEZs are being grounded in 5,500 acres near Visakhapatnam and 8,000 acres in Kakinada. The IFFCO Kisan SEZ in 2,700 acres and Sri city SEZ in 2,526 acres will provide 2.30 lakh direct jobs and 1.50 lakh indirect jobs, said the Chief Minister.

MACHILIPATNAM:The State Government will enter into an agreement with the Maytas Infra Private Limited, the firm that has been given the contract for developing the Machilipatnam port, by January-end after the Cabinet clears the proposal, according to Major Industries Minister J. Geetha Reddy.

Addressing a meeting after laying the foundation stone for an Imitation Jewellery Park at Pothepalli near here on Sunday, Ms. Reddy brushed aside reports that the Government was going back on the proposal to develop the port. Chief Minister Y.S. Rajasekhara Reddy had given a definite commitment in this regard, and the port would be developed at the earliest, she asserted. She said several power industries, including a 1,000-mega watt power plant by Maytas, a 2,000-mega watt plant by the NTPC and the AP Genco and another 1,000-mega watt plant by Gayatri, would come up near the port once it was fully developed. In addition, a paper mill would also come up.

Ms. Reddy complimented the local manufacturers of imitation jewellery for coming together for an industrial park. APIIC Chairman and Managing Director B.P. Acharya said that the park would provide employment to 40,000 people. A common facility centre had also been granted here.

VIJAYAWADA: E. Sreedharan, Managing Director of the Delhi Metro Rail Corporation (DMRC), has attributed the success of Delhi Metro to the use of best technologies and adherence to punctuality, integrity and highest values at every stage of the implementation of the project.

“The success of Delhi Metro has helped in spreading metro culture all over the country. It is evident from the way many State Governments and cities are rushing for getting such a project,” he said on Sunday.

Dr. Sreedharan was speaking on ‘Delhi Metro – A Success Story’ after receiving Dr. Pinnamaneni and Smt. Seethadevi Foundation award for 2007 at a function here.

Foundation chairman P.L.N. Prasad presided over the function, while managing trustee C. Nageswara Rao and others were present. Senior journalist Andavalli Satyanarayana gave a small brief on the activities of the foundation.

He said it was a matter of pride for the Delhi Metro that Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and scores of other cities had started nursing the aspiration of having a good metro rail system to make transportation easier and pleasurable for the people of there.

The DMRC’s human resources were under great demand. For Hyderabad, a high speed rail connection was being planned to connect Begumpet and the International Airport at Shamshabad.

“The distance is nearly 43 kms and it will be covered in just 24 minutes in this system,” he said.

Dr. Sreedharan said small and lean teams of dedicated professionals were major contributing factors behind the successful implementation of the first phase of Delhi Metro much in advance of the scheduled time.

It was ensured that there were no clerks or peons in the system to the extent that officials of the rank of joint secretary to the Government had to fend for themselves, which worked wonders in avoiding corruption and enabling fast-paced decision making, he added.

He opined that a Metro system would be more viable than the proposed Bus Rapid Transit System for Vijayawada.